Customer Segmenation

Function for getting Plotly images in Colab

Preprocessing

United Kingdom

RFM Stands for Recency, Frequency and Monetary

Recency

To calculate recency, we need to find out most recent purchase date of each customer and see how many days they are inactive for. we will apply K-means clustering to assign customers a recency score.

Frequency

find total number orders for each customer.

Revenue

Find Recency, Frequency and Revenue Cluster

Elbow method and Silhouetee both methods are giving k = 4